Funding Secure hits the news again

Currently ie. today I sold 25 parts probably 60% of my current investments in FS are less than 30 days they are however still relatively well within my 24 month allowance and were all bought at  18 to>23% so take about a year before the increase % is affected by the possible interest on interest bought deficits .. This is only slightly higher than previous years and reflects the changing markets..  

As I mentioned the other factors of FS ie. No income tax and unlimited CGT write off makes the whole platform unique.

If I require funds to buy current loans I merely add more funds at that time as required to be at the top of most of SM loans that are atypical.
That means I supply sufficient money based on SM and PM availability to keep things ticking over the amount invested in each loan varies with cash flow but is maintained at constant % in each varying depending on wither the loan is a candidate for holding or flipping. The individual amount held to maturity is about 10% of that used for flipping so exposure to the riskiest part of holding a loan is minimised. Usually parts held are bought just before the become unavailable and are not part of the selling investment they are 100% sold previously and may not be bought again unless the margins are beneficial.

With the current SM slow down and lack of new loans  I have sufficient from sales to maintain poll positions. By quirk of fate it allows me to maintain maximum single investment per loan as selling easier as new investors wishing to dutifully Diversify require loans for their portfolio and I offer a discount. So win all round.

I have no requirement to withdraw funds. I do however like to have my funds increase which they do a little at a time over a long period using the 8th wonder of the world compounding interest this soon becomes a substantial sum. I am nearing 100% ROI on the original sum I allocated. When that happens I may withdraw or transfer out all but my original amount so I am only using the “Free money”

I used to do similar at the casinos. I would play till I made enough for a nice meal then stop. The object there is when I gamble is not to win it is not to loose so you never chase a loss. I have never lost their either. Again it took research luckily casinos provide statistics on roulette that I played  and observation of live wheels made the gambling slightly less risky. I never risked more than I could afford to loose and at that time no more than £100

A good card counter has >51% chance of winning that’s why casinos ban them.

I’m lucky enough to enjoy FS without the worry of requiring great liquidity.  Overall no loss would be a satisfactory outcome with current interest paid that possibility s remote.

I worked hard to get the money I have and one of the pleasures in life is doing things you enjoy. I have more pleasure than displeasure with FS should that change I will withdraw gracefully and find a new distraction.

I can understand others that may not be in a similar position as myself find themselves worrying about things that they have no control over and get frustrated. Again I have managed to lead a nearly entirely stress free life by being able accept this and not allow things to affect my outlook until there is actual tangible things that can be dealt with. 

I would rather be told told that my best friend was in a crash 3 days ago but is now fine than being told 3 day prior that the were in a crash and there is nothing I could do to help. This would just make me feel bad and would add unnecessary stress to me. 

Telling me earlier is of no benefit to anyone.

Accept current positions in FS and only allow concrete data with outcomes you can affect make any difference and the whole experience should be positive. If you only feel negative get out and stay out.

If the quality of the asset is good Lucifer himself can be the borrower you know your money is secure.

It is the nature of the property sector that asset values are open to interpretation over a wide range. Just watch homes under the hammer and valuations can vary by £100000 on a £400000 property.

Also external factors can greatly change things from the start that have nothing to do with the borrower and that is why lending on any amount above the distressed sale values is fraught with risk. That is why even asset backed P2P lending is classed as high risk.

You have to accept this and make your own judgment as to what loans you want to invest.

With the obvious exceptions of a Garnet and fraudulent art loans and a few toy trains  bling is a reasonable investment. That is why FS will stand by failing investments due to current market conditions and hold onto the assets themselves until better conditions prevail.

That is why bling attracts a lower return reflecting the reduced risk

Do you turn down a 30% LTV loan because the borrower previously did a few bad things ? 

The choice is yours but that assumes nobody ever reforms and all bad past deeds are their for all to see. 

I am sure we all have done things that were not typical that would adversely affect our current lives if the were known even though this n no way resembles the person you now are.

That is why the actual asset should be the only unbiased thing that should be taken into consideration.

Errors in valuations are an entirely different question not associated with the borrower as these are independent and if a problem then the appropriate actions should be taken.

The identify of the borrower may be of use in assessing their net worth and likelihood of recovery were something to go wrong with the security held. That however is just an additional comfort as the asset should be sufficient to cover the loan.

I agree. But i am not a punter I take a lot of information into consideration and make an informed choice that overall has a positive outcome.